Types of Company-Registration

In India, every business must have a Certificate of Incorporation to conduct its business operations. The process of registration, documents, application, and tax structure, will differ on the nature of the business. Registering the right business model will help the owner of the business to work as per their goal. Below are the five different types of company registration that every new business must be done.

5 Types of Company Registration are:

Types of company registration

1. Sole Proprietorship

A single person operates a sole proprietorship business in which the liability of the person is not limited. So, in case of dissolution, the personal assets of the owner will used to settle off the financial liabilities. In most cases, there is no need to register a business, some examples of sole proprietorship are grocery stores, parlours, retail stores, etc.

2. Partnership Firm

Partnership is one of the popular forms of business in India, to set up a partnership there must be a minimum of two persons. They create a firm and agree on the ratio in which they divide the profit. This firm is easy to incorporate, with less compliance as they do not have restrictions on the activities. It is a cheaper option to set up as compared to a company. The liability of the partners is not limited and they face difficulty in raising funds.

3. Limited Liability Partnership (LLP)

If you plan to set up an LLP, then you must be aware that LLP is a mixture of a partnership firm and a Pvt. Ltd. Company. The framework of the business is like a corporation which is set up on the terms of a mutually agreed partnership deed. A minimum of two partners can come into an LLP agreement. The partners have limited liability and perpetual succession similar to a company.

4. Private Limited Company (Pvt. Ltd)

A Pvt. Ltd. company has a separate legal entity and the liability of the owners is limited to their shareholdings. The maximum number of shareholders is 200 and they do not trade their shares in public. The shareholders have limited liability which means at the time of dissolution, they will pay the amount as per their contribution. 

Assets of the shareholder will not be used until and unless they sign a contract based on a company. If anyone in public wants to know the details of the company then they can check it on the website of the Ministry of Corporate Affairs (MCA).

5. One Person Company

A One Person Company (OPC), is for individuals who want to create a sole proprietor business with limited liability benefits. A single person can set up an OPC and can enjoy the benefits of the company such as a separate legal entity, perpetual succession and limited liability. In an OPC, there are fewer compliances such as, there is no need to sign the books of accounts by the company secretary and the director can file the annual returns. It is easy to manage as the decision-making process is quick.

Company Registration Process in Simple Steps

On the nature of the business, the process of company registration in India will depend. Below are some general steps that every business must follow:

  • Choose a unique name and register it under trademark registration.
  • For Directors of the company, obtaining a Digital Signature Certificate (DSC) and Director Identification Number (DIN).
  • File application to the respective authorities for registration. For instance, register the LLP, OPC or a Private Limited Company by applying to the Registrar of Companies, or a Partnership firm by applying to the Registrar of Firms.
  • Submit the required documents and pay the applicable fees.
  • Receive a Certificate of Incorporation.


Registering a business is expensive and time-consuming. For instance, if you want to register a Private Limited Company, then you have to follow several steps such as eligibility, application, documentation, fees, follow up and then get an incorporation certificate. It is advisable to get help from the expert for applying for business registration.

By Manish

Manish Kumar is a seasoned Digital Marketing Expert with a passion for driving online success. With a wealth of experience in the dynamic field of digital marketing, he possesses expertise in SEO, SMO, PPC, and YouTube marketing, guiding numerous online businesses to achieve outstanding results.

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